Risk sentiment appeared to improve overnight, with the S&P500 up 0.9%, US bond yields slightly higher, and the AUD and NZD rising against the USD. Helping was news that Chinese officials would visit the US later this month for trade talks.

A risk averse mood hurt equity markets (S&P500 -0.9%, Eurostoxx -1.5%, Shanghai -2.1%) and depressed bond yields. Developed currencies were relatively contained.

A risk averse mood hurt equity markets (S&P500 -0.9%, Eurostoxx -1.5%, Shanghai -2.1%) and depressed bond yields. Developed currencies were relatively contained.

Markets were calmer as the Turkish lira stabilised. The S&P500 is up 0.7%, and US bond yields and the US dollar firmed slightly.

Markets were calmer as the Turkish lira stabilised. The S&P500 is up 0.7%, and US bond yields and the US dollar firmed slightly.

Contagion from the Turkish currency crisis appeared to be limited to emerging markets overnight. Major currencies were little changed, US bond yields firmed a tad, and US and European equities recorded modest losses. Emerging currencies generally incurred further losses, the Turkish lira trading at its record low, and the Argentine peso making a fresh record low.

Contagion from the Turkish currency crisis appeared to be limited to emerging markets overnight. Major currencies were little changed, US bond yields firmed a tad, and US and European equities recorded modest losses. Emerging currencies generally incurred further losses, the Turkish lira trading at its record low, and the Argentine peso making a fresh record low.

Risk aversion saw US equities and US bond yields fall and the US dollar rise. Concerns about Turkey intensified after the US imposed fresh tariffs, taking the Turkish lira to a record low and unsettling global markets.

Risk aversion saw US equities and US bond yields fall and the US dollar rise. Concerns about Turkey intensified after the US imposed fresh tariffs, taking the Turkish lira to a record low and unsettling global markets.

Fx and bond markets adopted a slightly risk averse posture amid the ongoing US-China trade war plus US disputes with Russia and Turkey. Equities were resilient, helped by solid tech company earnings.